Insurance, Life Insurance

Child Plans: Myths vs Reality

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Seeing a child makes you smile instantly. A little child surely brightens up everything around.

If you are a parent or will be in the future, you want the best prospects for your child. Caring and nurturing of a child is an overwhelming experience however, it does involve expenses.

Given the current economic conditions, thinking about the expenses part is considerable. Moreover, if you are not with your child tomorrow have you ever thought who will take care of the finances? How are you going to secure the future of your child?

The big question is what would happen if you face premature death.

Bringing In the Corpus

Ensuring financial security for the child the best tool is buying child insurance plan. Child policy will bring in the adequate corpus at every milestone for your child so that he is capable enough to fulfill his dreams.

If you are still pondering why would you need a child insurance policy? Look below at some questions and thereafter you are the best judge.

  • How will my child get the best of education?
  • How will my child manage tomorrow when I am not around tomorrow?
  • Do I have enough money in my bank account to manage the expenses of my child?

Well, surely you have your answer.

Buying a Child Policy

The intent of buying a child policy is to provide a safety net to your child in case of any financial emergencies.

Let us have a glance at some advantages to having a child policy as follows:

  • It is a big financial crutch for your child’ future wherein your child is safeguarded with payouts and maturity benefits.
  • Your child’s education is of prime importance. Child policy is ideal for taking care of the expenses in terms of education or any other financial liability such as a marriage, etc.
  • In case of the demise of the parent during the tenure of the policy period the child will receive a lump sum payout as death benefit on maturity and child policy also provides with doing away with the obligation of premium.
  • Sometimes, a child policy also acts as a protector of the income for your child if your child starts earning at a young age.
  • Child policy is also used as surety for higher education loans in the future.

Too Much On the Plate

With a plethora of insurance companies in the market, there is a bunch of investment products being offered. Due to this, it sometimes becomes a tedious task for a parent to decide which child policy to go for. Of course, there are certain misconceptions, which lead to confusion leaving the parent in a state of the dilemma of which child policy to invest.

Let us some myths surrounding child policy so that you can go ahead and make an informed decision.

Debunking Myths around Child Policy

Take a glance at the real pictures behind the myths:

Myth 1- Child Policy covers the child’s life.

Reality- The most common myth around child policy is that buying a child policy insures the life of the child. A majority population is unaware of the truth that it is the life of the income-earning parent is secured. The benefit a child policy brings in is that even if a parent is not around the dreams of the child will be fulfilled.

Myth 2- Upon the death of the insured parent the death benefit of a child policy is paid out as a lump sum and does not take care of the needs of the child in the future.

Reality The Child policy has a component called Family Income advantage wherein payments are made intermittently to the family with the goal that the child’s educational needs are dealt with. Also, if the policy offers the advantage of financing premium wherein the future premiums are borne until development by the safety net provider and the development advantage is paid to the beneficiary. It is to take note of that these advantages are added to the singular amount that is paid out upon the demise of the safeguarded.

Myth 3- Child Policy is not pellucid enough.

Reality- In a market-linked child policy, all charges are clearly described. The child policy document gives you the complete and detailed break-up of the charges and you exactly know of where the amount has been invested. Just to keep a regular check you also receive the statement of your holdings.

Myth 4– Investing in a child policy gets your money blocked for an entire term of the policy and you cannot withdraw the money in case of any emergency.

Reality- A child policy is always flexible enough. Moreover, if you opt for a market-linked plan it does give you the benefit of withdrawing the amount partially on the context of emergencies post the completion of certain years. The duration may vary from on insurance providers to the other.

Myth 5– Under a child policy, the payments are made only for the higher studies of the child.

Reality- At the point when the plan’s advantages are paid, they should not be just for the child’s advanced education. It is totally up to your attentiveness on how you need to utilize the assets toward the day’s end. On the off chance that your child decides not to seek after further studies or you might want to utilize the assets to satisfy some other responsibility, you can do so regardless of the first objective that it was planned for.

Get the best Child Insurance Policy

  • LIC Jeevan Ankur

The Bottom Line

It is great to build a fund towards the fate of your child. It is imperative to begin as ahead of schedule as would be prudent. The early you start the better return you will get in the long haul.

Additionally, time and consistency are your most noteworthy partners. Having a decent arrangement set up today is superior to an ideal arrangement tomorrow.

With regards to investing for your child, do not choose by hearsay and take an educated choice.

By Policybazaar

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Standard
Health Insurance, Insurance, Travel Insurance

Benefits of Travel Insurance and Personal Accident Insurance Policy

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Planning to go abroad for a vacation? Don’t forget to keep your travel and personal accident insurance policy ready.

What is Travel Insurance?

Travel insurance or international travel insurance is a type of insurance policy designed to cover losses incurred while travelling, either internationally or domestically. Such policies cover medical expenses, trip cancellation, lost luggage, flight accident and other losses. A Travel insurance policy is ideal for people who are on vacation or business travel or have taken a sabbatical from work/home life and have decided to travel abroad or locally for a long period of time.

Travel insurance can be purchased while booking the trip or you can opt for a multi-trip policy which provides cover for an unlimited number of trips within a set time frame. Frequent flyers opt for a multi-trip policy.

What are the key benefits of a Travel Insurance Policy? Read ahead and find out.

Benefits of Travel Insurance

  • Hospitalization Expenses – Hospitalization expenses include the cost incurred in case the policyholder availed immediate medical assistance or contracted any illness or injury while on a trip, either internationally or domestically.
  • Medical Evacuation – Medical evacuation provides cover for the cost incurred for an ambulance or emergency transportation and evacuation services caused due to injury, accident or illness while on a trip, either internationally or domestically.
  • Repatriation of Remains – Repatriation of Remains provides cover for the cost of transporting the remains of the deceased policyholder back to the country of origin/residence up to an pre-decided amount.
  • Dental Treatment – This covers the cost of medical expenses incurred due to an injury/illness to the tooth/teeth of the policyholder during the trip.
  • Personal Accident – In case a policyholder meets with an accident during the policy period which results in death or permanent total disability, personal accident provides cover for such instances.
  • Loss of Checked-In Baggage – There are often times when airlines misplace the luggage of a customer. This is termed as Loss of Checked-In Baggage. This type of coverage commences from the time the Checked-In Baggage is entrusted to the Common Carrier (the airline) and a receipt obtained. It terminates on delivery by the Common Carrier against surrender of the receipt at the Place of Destination/ City of Residence. This cover is applicable only if the entire luggage is permanently lost by the airline. Also, this cover is applicable individually and independently in case of Trip involving multi destinations en-route.
  • Checked-In Baggage Delay – Under this feature, the insurer will compensate and provide an allowance for the Delay of Checked-in Baggage in case the delay is for more than 6 Hours (for Geographical scope of cover within India)/12 Hours (for Geographical scope of cover outside India) or as per the number of hours as stated in the policy. The delay is considered to be the time lapsed from the actual time of arrival of the Common Carrier (the airline) and the receipt of the Checked-In Baggage by the Insured. In case of a multi destinations en-route, the insurer’s liability will be limited to loss suffered for two such incidents of delay of Checked-In Baggage.
  • Trip Delay – In case a particular trip is delayed for more than 8 hours due to terrorism, cancellation or rescheduling of flights by Common Carrier, or any natural peril, reimbursement of additional expenses is provided.
  • Missed Flight Connection – In case of failure of the policyholder to access the connecting flight arising out of and consequent upon the delayed arrival of the earlier flight caused by reasons beyond the control of the insured, reimbursement of additional expenses is provided.
  • Loss of Passport – In case the passport belonging to the policyholder is lost during the trip, the insurer will reimburse the policyholder for expenses incurred in connection with obtaining a duplicate or fresh passport.
  • Trip Cancellation and Interruption – This provides cover for cancellation charges/transportation expenses incurred by the insured to the return to the place of origin or for the trip being cancelled due to natural perils, or death or emergency hospitalization of insured or insured’s immediate family member.
  • Personal Liability – This feature provides cover against legal liability for bodily injury or property damage to third parties on account of an accident occurring within the trip and during policy period.
  • Financial Emergency Allowance– In case of a financial emergency as a result of accidental loss of money held by the policyholder during the trip, the insurer will pay a sum as a fixed allowance as mentioned in the policy.
  • Hijack Distress Allowance – This feature provides compensation in case the airline in which the insured is travelling as a passenger is subjected to a hijack and the airline, with all the passengers are held captive by the hijackers.
  • Compassionate Visit – Under this feature, expenses incurred for special assistance rendered by an immediate family member of the policyholder, in case the policyholder is hospitalized for more than 5 days due to any injury sustained/illness contracted during the trip are covered.

Exclusions under Travel Insurance

The exclusions under travel insurance are:

  • Certain medical conditions such as diabetes, HIV/AIDS/STDs, high blood pressure and many others
  • Baggage delays amounting to less than 24 hours
  • Hostility by military or terrorist activities
  • Loss instigated by the policyholder
  • Irresponsibly losing your belongings
  • Claim against an unapproved health condition
  • High risk/extreme sports/adventure activities not covered in the policy.
  • Illness/death of a pet
  • Cancellation by tour operator
  • Psychological/mental illness
  • Separation by either spouse as a reason
  • Local protests
  • Nuclear radiation/contamination by radioactive elements/natural calamities
  • Medical tourism
  • Losses caused due to intoxicated behaviour/under the influence of drugs/alcohol

Personal Accident Insurance Policy

Personal accident insurance is a policy cover that provides reimbursement of your medical costs or compensation in case of disability or death caused by accidents. It covers the following:

  • Accidental Death – In case of death of the policyholder in an accident, the nominee will get accidental death compensation. The sum assured amount can vary from Rs. 5 lakh to Rs. 1 crore.
  • *Permanent Disability** – Certain accidents can leave life-long permanent disability. Depending on the nature of disability, the insurer pays a certain amount. Permanent disability includes loss of speech, loss of vision in both eyes, and hearing loss in both ears. Permanent partial disability includes loss of hearing in one year or loss of eyesight in one eye, loss of an index finger, a thumb or a hand.
  • *Transportation Benefit** – In case an insured person is hospitalized in a remote location, the immediate family member will incur transportation expenses. The insurer will reimburse the cost of transportation up to Rs. 50,000 or more.
  • Additional Benefits – Education and employment benefits, funeral charges, etc. are all covered under additional benefits. In short, it is advisable to purchase a travel insurance plan along with personal accident cover as a rider add-on.

By Coverfox/Karan Sharma

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Standard
Health Insurance, Insurance

Three Reasons to Buy Online Health Insurance at an Early Age

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Generally, people are healthy till their early thirties. But, it doesn’t mean that you should skip online health insurance because you may experience future financial crisis occurred due to sudden medical expenses. It is advisable to own at least basic mediclaim coverage.

People must understand that a disease can attack them at any time without giving prior intimation. Buy individual health insurance India and secure yourself and your family against the increasing hospital bills.

This coverage gives a viable source to assist you and your family during bad times. Below are few reasons why you should purchase a healthcare plan at an early age:

Saves Money:

Do not forget that the younger you are the lower premium you will have to pay to your insurance service provider. The cost of the individual health insurance plans is mainly based on the insured’s age. It has been observed that the premium level increases after the age of 30.

Hectic Lifestyle has Increased Illnesses:

Today, everyone is busy in grooming their career path, so it leads to leaving bad habits on their health. Heavy consumption of beverages and unbalanced diet are some of the major reasons why people are now more prone to different health issues such as heart diseases, diabetes and cholesterol.

People who are suffering with stress-related hypertension have to take regular medicines to overcome this problem. If you buy a health insurance policy at early age, you may get a chance to pay less amount premium for coverage.

Having Employer’s Group Health Insurance is not sufficient:

You cannot overlook the urgent requirement of mediclaim policies and the costs of medical expenses are also increasing rapidly as compared to the rates of useful groceries. Under employer’s coverage, it is impossible to manage all the hospital bills.

By Policyboss

Visit us at rfcindia.net for more info or to solicit heath insurance policy.

Standard
Insurance, Life Insurance

5 Benefits of Buying long-term Term Insurance

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Recently the investment trend has changed drastically. Nowadays people get married in a later age, have kids even later. On the top of it, there are long-term home loans that completely roll over the retirement age. However, the liabilities and responsibilities towards your dependents do not necessarily end once you are 60 years old or retired. For this reason, most of the people these days opt for longer-term insurance plans.

However, the choice of policy duration rests with you. You can opt for any policy term as per your requirement. Considering the fact that term insurance plans provide death benefit post the death of the policyholder during the policy term, that’s why it makes sense to buy long-term coverage for young applicants.

Nowadays, term insurance companies in India provide term insurance plans that offer coverage till 85 or 100 years. If you are the only breadwinner in your family and want to secure the future of the loved one’s post of your demise then you can consider buying a long-term term insurance plan.

However, before that, you need to understand how to choose the best term insurance plan to meet your long-term financial goals and the disadvantages of buying the same. Check out this quick guide.

Below are Some of the Ways to Choose an adequate Long-Term Insurance Plan:

Policy Duration

When buying term-insurance it is a pre-requisite to consider the term for which the policy coverage will last. The policy term usually varies from one insurance provider to another. So, make sure that you choose a time period that works as per your financial condition, age, and future financial goals.

Longer duration term insurance plans are usually better than the shorter duration term insurance plans, as the tenure lasts longer, which means more savings.

Considering Income

One most important that you need to be sure of is your paying ability to pay-off the policy premium for the next 50, 60 or 70 years. So, ponder upon your current income, possible increments, savings, inflation, and future scope of income growth to be able to meet the premium cost let’s say after say 30 years. Therefore, make sure that your annual income is enough to be able to continue with the policy. Else, you can avoid a plan with too high term insurance premium rates.

Health Condition and Age Factor

These are small but important factors that an applicant needs to consider. When buying a term plan you must mull over your age and health condition. However, it makes sense to invest in the long-term at a young age if you want to ensure higher savings in future.

So, before you choose a term insurance plan you should consider your age and any health condition that you are suffering from. Because a person with serious health conditions, might not be eligible to buy a term plan for a longer duration.

Future Financial Goals

Most of the people buy term insurance cover for more than 40 years to ensure that they are able to fund their child’s marriage, child’s higher education cost, have comfortable post-retirement years and so on. So, while you select the term and coverage amount make sure that that you factor in the inflation as well.

Taking an example of the soaring education costs, the fees of B.Tech Course the costs Rs. 10 lakh now would cost Rs. 42 lakhs after 15 years. So you need to choose the sum insured, policy duration that would help your dependents lead the dame lifestyle even when you are not around.

Seek Financial Advice

You can seek insurance advice from a professional before you get yourself into a long-term commitment of paying a premium for a term insurance plan for the selected duration. Analyze all the pros and cons before you actually make the payment. You can ask the experts to take you through different plans and their premium rates and duration and help you select the one as per your requirements.

The Cons of Buying Long-term Term Plans

Naturally, longer coverage tenures would mean paying premium for a more years, as you need to pay it regularly throughout the policy duration. But then again, is it feasible to pay the premium for such long tenures?
Buy a long-term term insurance plan would mean paying off regular premiums for the entire duration to keep the policy in force. And, it can be disadvantageous for the below-mentioned reasons:

Liability to Pay Premium Post-retirement

If you choose a longer duration term plan that promises coverage up to 85 or 100 years, the premium would be an added expense post your retirement also. You will be liable to pay the premium till the policy term i.e. 85 or 100 years of your age. So, it can be difficult for you to pay premium regularly especially when you do not have a regular earning.

Higher Chances of Policy Lapse

In cases where the premium needs to be paid for such a long tenure, there is a higher probability of you inadvertently missing a payment during the retirement years. Non-payment of the premium would mean policy lapse. And all the year that you have been paying would be lost, along with the coverage benefits. So, make sure that it is a well-thought decision.

In a Nutshell

The above-mentioned parameters would help you select an adequate term insurance plan for longer tenure. You can now secure your family without worrying about future payments once you are sure while purchasing the policy. You can check out some of the best long-duration term plans on our site, compare them on the basis of the above factors and make an informed choice.

By Policybazaar

Visit us at rfcindia.net for more info or to solicit the insurance policies.

Standard